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    3. Second Home / Vacation Loans
    Investment

    Second Home / Vacation Loans

    "Finance your getaway."

    Financing for vacation homes and second residences. Better rates than investment property because of occupancy intent.

    10%

    Min Down

    640+

    Min Credit

    $766K Conforming

    Max Loan

    Get Pre-ApprovedTalk to a Specialist
    Last reviewed: January 2026 · CMS Mortgage Editorial Team

    Second Home / Vacation Loans Benefits

    Everything you need to know about your benefits

    Lower Rates Than Investment

    Personal use intent qualifies you for better rates than rental property loans

    Just 10% Down

    Lower down payment than investment properties (which require 15-25%)

    Vacation Ready

    Finance your beach house, mountain cabin, or city getaway

    Some Rental OK

    Rent occasionally when you are not using it—just not full-time

    Conforming Loans Available

    Up to $766K with standard conforming loan guidelines

    Seasonal Flexibility

    Use during holidays, summers, or whenever you need an escape

    How It Works

    Your path to homeownership in just a few simple steps

    Find Your Getaway

    Search for vacation properties in your preferred destination, 50+ miles from your primary home.

    Verify Second Home Status

    Confirm the property meets distance and personal use requirements for second home classification.

    Apply with Standard Docs

    Submit income verification like a primary home purchase—W-2s, tax returns, pay stubs.

    4

    Close with Better Rates

    Enjoy lower rates than investment property loans due to personal occupancy intent.

    Find Your Getaway

    Search for vacation properties in your preferred destination, 50+ miles from your primary home.

    Verify Second Home Status

    Confirm the property meets distance and personal use requirements for second home classification.

    Apply with Standard Docs

    Submit income verification like a primary home purchase—W-2s, tax returns, pay stubs.

    4

    Close with Better Rates

    Enjoy lower rates than investment property loans due to personal occupancy intent.

    5

    Enjoy Your Retreat

    Use your vacation home personally and rent occasionally if desired.

    Loan Details

    Documentation Required

    • Standard income docs (W-2s, tax returns, pay stubs)
    • Primary residence address verification
    • Signed occupancy certification
    • Asset statements for down payment
    • Property appraisal

    Eligible Property Types

    • Beach houses and coastal properties
    • Mountain cabins and ski condos
    • Lake houses
    • City condos/apartments (for urban getaways)
    • Resort communities

    Additional Info

    • Must be 50+ miles from primary residence
    • Must be suitable for year-round use
    • Personal use intent required
    • Limited rental allowed (not primary income)

    Second Home vs. Investment Property

    FeatureSecond Home(This loan)Investment Property
    Primary IntentPersonal useRental income
    Down Payment10%15-25%
    Interest RatesBetter (like primary)Higher
    Rental AllowedLimited/occasionalFull-time OK
    Distance Required50+ miles from primaryNo requirement
    QualificationPersonal income (DTI)Personal or property income
    Occupancy ScrutinyLender verification requiredN/A

    * Rates and terms subject to change. Contact us for current offers.

    FAQ

    Frequently Asked Questions

    Common questions about Second Home / Vacation Loans

    Last updated: May 12, 2026

    What qualifies as a second home vs. investment property?

    A second home is for personal use—you intend to live there part-time, not rent it full-time. It should be 50+ miles from your primary residence. If your main goal is rental income, that is an investment property with different (higher) rates.

    Can I rent out my second home?

    Yes, limited rental is allowed. You can rent occasionally when you are not using it (like a few weeks in summer). However, if you plan to rent full-time or generate primary income from it, you will need an investment property loan.

    Why is the 50-mile distance rule important?

    Lenders require distance to ensure it is truly a second home and not just a property you could live in as a primary residence. Properties close to your main home raise occupancy fraud concerns.

    Yes, significantly. Second homes are priced more like primary residences because of the personal occupancy intent. Investment properties have higher rates due to increased default risk.
    You can convert to a rental later, but this may affect your loan terms. If you refinance, you would need to refinance as an investment property at those (higher) rates. Check your loan terms for occupancy requirements.
    It depends. If you use the property personally and only rent occasionally on Airbnb, likely yes. If your primary intent is Airbnb income with minimal personal use, you will need investment property financing instead.
    Compare all loan types — Read our comprehensive mortgage guide
    Read the Compare GuideSee how Second Home / Vacation Loans stacks up against other mortgage options
    Compare All Programs Side-by-SideDrop Second Home / Vacation Loans next to up to 2 others and compare requirements line by line

    Get Rate Drop Alerts

    We'll notify you instantly when rates drop to your target.

    Get Started with Second Home / Vacation Loans See Today's Rates
    Top 50 National Brokerage•NMLS #212405

    Ready to Finance Your Getaway?

    Get vacation home rates with just 10% down

    Get Pre-ApprovedTalk to a Specialist

    Or call us directly: (757) 558-2603

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